AU Small Finance Bank Plans ₹11,000 Cr Fundraise via QIP and Debt

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Synopsis:

AU Small Finance Bank plans to raise ₹5,000 crore through equity and ₹6,000 crore through debts. The key financial figures of the bank include ₹73,999 crore in advances and ₹87,182 crore in deposits as of March 2024.

AU Small Bank News Today

AU Small Finance Bank's board has approved a fundraising plan to raise up to ₹5,000 crore through equity and up to ₹6,000 crore through debts.

The equity may be raised via private placement, qualified institutions placement (QIP), preferential allotment, or a combination of these methods.

On the debt side, the bank plans to issue bonds and non-convertible debentures in one or more tranches.

Financial Performance

As of March 2024, AU Small Finance Bank reported gross advances of ₹73,999 crore and deposits amounting to ₹87,182 crore.

The bank saw a 25% year-on-year growth in advances and a 26% increase in deposits during this period, indicating robust financial health and growth momentum.

Explore: Au Small Finance Bank Ltd Share Price

Dividend Announcement

The bank's board has recommended a dividend of ₹1 per equity share of face value ₹10 for FY24. The record date for determining the shareholders eligible for this dividend is set as July 12.

This follows an earlier recommendation of a similar dividend, subject to shareholders' approval.

Strategy and Implementation

The fundraising initiatives are part of AU Small Finance Bank's strategic efforts to boost its capital base and support future growth opportunities.

By tapping into both equity and debt markets, the bank aims to strengthen its financial position and enhance lending capabilities in the competitive banking sector.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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